Long Son PIC to raise capital for new industrial park project

15-Jul-2020 Intellasia | VNS | 6:02 AM Print This Post

Long Son Petroleum Industrial Zone Investment JSC (Long Son PIC) will issue a total 82.5 million new shares seeking funding for its project in Ba Ria-Vung Tau Province.

Long Son PIC will sell 65 million shares to Gelex Energy, a member of the Vietnam Electrical Equipment JSC (Gelex), and 17.5 million shares to Viglacera Yen My-Hung Yen Industrial Zone Development JSC.

The deal is expected to be complete by the end of the year. Long Son PIC will increase its total shares to 165.2 million from the current 82.7 million.

Gelex Energy will be the biggest shareholders at Long Son PIC with a 48.91 per cent holding.

Gelex and related shareholders have 19.1 million shares or 23.1 per cent of Long Son PIC’s capital.

Gelex’s energy arm on June 5 bought more than 15.8 million shares, or a 19.1 per cent stake, in Long Son PIC. Gelex previously held 3.3 million shares or 3.95 per cent stake.

The company expects to raise VND825 billion (US$35.68 million) to develop the Long Son Industrial Park. The IP project demands total investment of VND29.6 trillion and construction will be carried out in three stages.

Investment for the three stages will be VND11.76 trillion, VND10.45 trillion and VND7.4 trillion, respectively.

Long Son PIC wants to raise capital for the project as it now has only VND810.4 billion worth of capital, which is not enough to conduct the project.

The firm needs to increase its capital in the project to minimum 15 per cent.

Long Son PIC eyes a four-fold increase of total revenue in 2020, which may reach VND146.2 billion. Post-tax profit is expected to climb to VND28.2 billion from a loss of VND2.1 billion in 2019.

Long Son PIC shares (UPCoM: PXL) stood firm at VND11,000 apiece on Monday, having risen total 4.76 per cent since the beginning of July.

Gelex shares (HoSE: GEX) gained 2.2 per cent to close Monday at VND20,500 apiece. The electrical equipment firm’s shares have soared 26.5 per cent since June 29.

If the share issuance completes, Gelex will take one more step to enter the industrial real estate sector.

The Hanoi-based company has recently offered to buy 95 million shares and raise its ownership to 46.15 per cent at industrial group Viglacera, which owns 5,000 hectares of IPs in the North.

Viglacera’s board of directors on July 7 approved the deal.

bizhub.vn/markets/long-son-pic-to-raise-capital-for-new-industrial-park-project_317143.html

 


Category: Business, Vietnam

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